Author Topic: How do you start a business?  (Read 8247 times)

Quickerblade

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Re: How do you start a business?
« Reply #100 on: January 13, 2008, 01:38:42 PM »
I don't think starting a gym smaller than 15,000 to sq. ft. is feasible.  You cannot survive with a gym when all you can offer is a weight room and some cardio and a small locker room.  You cannot compete against your competition unless you offer at least what they offer and more.  Now in a small rural town where there are no BIG BOYS (24 Hour Fitness, BAllys, Gold's etc) then you can get away with a smaller facility.  But, in cities where you have competition you need more.  You have to have locker rooms and they have to be extra special.  You can't have cheap lockers, ugly floors and gang showers.  You have to have sufficient amount of cardio equipment.  You have to have more pieces of the equipment that is used more.  Treadmills and Ellipticals are the most popular pieces of cardio nowadays.  For example my club will provide 108 pieces of cardio.  I am having some specialized pieces coming in.  My club is also targeting more of a "functional training" concept.  A place that will provide equipment, services and programs targeted towards improving a person performance in sports and everyday activities.  Not just a place to get big muscles and lose weight.

MMA is the fastest growing sport in the world.  When we open we will immediately become one of the largest MMA training centers and will be the largest one of its type in the world.  I also have one of the biggest names in the MMA industry as the person who is going to be in charge of my MMA division.  So immediately I will have worldwide recognition.  I wouldn't want to do a gym unless it was going to be successful and popular.  I have millions riding on this and so far it looks to be a homerun. 
When this gym opens let us know, I would love to check it out

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Re: How do you start a business?
« Reply #101 on: January 13, 2008, 03:24:46 PM »
When this gym opens let us know, I would love to check it out

If it ever open, thats it
.

onlyme

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Re: How do you start a business?
« Reply #102 on: January 13, 2008, 05:40:42 PM »
onlyme

So basically your gym does not exist YET?  ::)

No it should be open sometime later this year.  We have several inquiries about opening in other locations.  There are steps and right now we are on the last one till we secure the lease.  I have been going back and forth between two locations and I like one more than the other.  It all depends on the terms I can get and that is where we are at.

pellius

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Re: How do you start a business?
« Reply #103 on: January 14, 2008, 01:57:39 PM »
Crap! You started in 01 and by 06 you were on track to do 10mil in sales! And you're only in your twenties! How the hell do you do it?
Monster props to you. You're one of the reasons that makes this country great.

I sold 1fast400 and bulknutrition in June of 06.  I'm still involved in the supplement industry, just private about it.  Own a race track in NC.  Started the online site in July of 02, was on track to do 10m in sales in 06 before I sold.  I started my first retail store in 11/01 by putting 30k in a cd and borrowing 45k against it.  It was my life savings at that point (was 21 years old). I had worked all through college and saved every penny.  I didn't pay myself for a 18 months to get the business going.  I lived at home, never went out and cut every expense I possibly could. 

When you're on the hook personally, it's amazing what you're willing to give up and do to succeed.  At the time I sold, my salary was 30k a year. 
 
 


pellius

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Re: How do you start a business?
« Reply #104 on: January 14, 2008, 02:10:22 PM »
Hey PM me to tell me who you are.  I know that location.  It is good since it is right next to the gym.  I'm not doing anything with the Penn family on this gym though.  I do have someone else who is running my MMA center though.  I love the Penn family and they were good to me but I needed to do something that will help me more so I had to leave there.  But I am sure we will do something together again.  I do plan on opening in Hawaii.  I plan to go to Kona first though since I have a grudge against a guy over there I need to get back at.:D

How many beds does that place have.  If you can find out how many people are using the beds each day and what times.  Those hours they are opened might be okay if they didn't get any customers in during those hours.  Also, I personally like the "stand-up" units better.  They take up less room and take less cleaning and maintenance.  How many sq. ft. is that place and what is their rent.  Do they give the members at 24 a better deal than the general public.  And the way these tanning salons make money is not from the tanning itself it is from selling of the tanning products and other shit they offer.  The tanning is just to get them in the door.  You would be lucky to make enough to pay all your hard costs from the tanning alone.  You need to find the best products and get them at the best price you can so your profit margin is high.

Over there tanning is a great business.  People who use them usually work all day and don't get chance to go to the beach except weekends.  So using the beds once or twice week keeps them tan.  Plus, with the standup units the fatter person can use them too.  Not to sound mean but that is a fact.

The place is small and they have on restroom facilities on the premises which is why they are closed at random hours as the girls have to walk down to the public bathrooms. This along with their lunch breaks and errands makes for a very unprofessionally run biz. They have six beds: one orbit, one stand up and four regular 20 min beds that do nothing for me. Actually only the orbit is decent though they advertise the stand up one as the strongest but since the max time is only ten minutes it really doesn't do much for you if you have some color already. The lease space in that open mall is $2.30/sqft. Don't know if that's good or bad for the area which is prime.

If I owned a place I wouldn't mind extended hours if I work it myself because once you get going everything is a fixed cost. The lease space and equipment and everything else is already paid for so it doesn't cost anything extra to keep the doors open. BTW, this is what they charge -- note the expiration dates. This is unheard of when I was in Torrance/Redondo Beach.

Hours: Mon-Sat: 10am-9pm, Sun: 10am-5pm

1month unlimited: 20min bed: $80.00,  15min bed: $100.00,  10min stand up bed:  $120.00
 
5 tans expires in 15 days:    20min:   $40   15min:  $45   10min:    $50
10 tans expires in 30 days:    “         $70      “       $75      “        $80
15 tans expires in 30 days:    “         $90      “       $95      “        $100
20 tans expires in 45 days     “         $110     “      $125     “        $150       

onlyme

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Re: How do you start a business?
« Reply #105 on: January 14, 2008, 02:34:15 PM »
The place is small and they have on restroom facilities on the premises which is why they are closed at random hours as the girls have to walk down to the public bathrooms. This along with their lunch breaks and errands makes for a very unprofessionally run biz. They have six beds: one orbit, one stand up and four regular 20 min beds that do nothing for me. Actually only the orbit is decent though they advertise the stand up one as the strongest but since the max time is only ten minutes it really doesn't do much for you if you have some color already. The lease space in that open mall is $2.30/sqft. Don't know if that's good or bad for the area which is prime.

If I owned a place I wouldn't mind extended hours if I work it myself because once you get going everything is a fixed cost. The lease space and equipment and everything else is already paid for so it doesn't cost anything extra to keep the doors open. BTW, this is what they charge -- note the expiration dates. This is unheard of when I was in Torrance/Redondo Beach.

Hours: Mon-Sat: 10am-9pm, Sun: 10am-5pm

1month unlimited: 20min bed: $80.00,  15min bed: $100.00,  10min stand up bed:  $120.00
 
5 tans expires in 15 days:    20min:   $40   15min:  $45   10min:    $50
10 tans expires in 30 days:    “         $70      “       $75      “        $80
15 tans expires in 30 days:    “         $90      “       $95      “        $100
20 tans expires in 45 days     “         $110     “      $125     “        $150       


That place has no restroom.  Does it have a sink for washing.  If it does someone needs to go in there and put in a toilet.  It has a drain.  And how can they charge $2.30 a foot.  Is that with C.A.M. too.  I would defnitely renegotiate a new lease and get the restroom put in if I was to take that location.  And how many of the current customers are actually gym members from next door.  If the numbers are not that high then maybe relocating or opening somewhere else is better.  That location is in the back with no major street footage.  you need to be out near the highway so people can see you and you take advantage of the traffic on the highway.  Those prices are defintiely high so you have some room to play.  Like I said you want more people to come in and use the beds so they purchase the products you are selling. 

Thealmightyronald

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Re: How do you start a business?
« Reply #106 on: January 14, 2008, 02:48:33 PM »
Sure...money and a plan.  By the way, what did you do with $500.00 to become successful?

I'm saying it is a huge advantage.  I'm also saying that those that don't fall into the outline I described above are the exceptions, not the rules.  When my friends ask me about my website and web design business I explain to them that 95% of similar businesses fail within the first year.

Obviously it's an advantage lol. You're an idiot, of all the business owners in the city not one started with 1 million.

pellius

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Re: How do you start a business?
« Reply #107 on: January 14, 2008, 02:49:24 PM »
That place has no restroom.  Does it have a sink for washing.  If it does someone needs to go in there and put in a toilet.  It has a drain.  And how can they charge $2.30 a foot.  Is that with C.A.M. too.  I would defnitely renegotiate a new lease and get the restroom put in if I was to take that location.  And how many of the current customers are actually gym members from next door.  If the numbers are not that high then maybe relocating or opening somewhere else is better.  That location is in the back with no major street footage.  you need to be out near the highway so people can see you and you take advantage of the traffic on the highway.  Those prices are defintiely high so you have some room to play.  Like I said you want more people to come in and use the beds so they purchase the products you are selling. 

Well, I wouldn't want that place just one in the same mall as there's space available. So I'd want to start new and put that dump out of business. Also, there is no sink for washing. I don't know how many members go to the gym but since it's right next door I imagine a good percentage go there. The space that I saw open is in the same walkway that starts at L&L's (if you're familiar with the lay out) you can see McDonald's from the empty lease space. Also, I'm sure I could double the membership just by staying open during the posted hours, extending the hours, dropping all expirations dates on sessions paid for, and cutting $10.00  on everything across the board. Oh, and having decent up to date beds that work.

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Re: How do you start a business?
« Reply #108 on: January 14, 2008, 04:01:34 PM »
I didn't bother reading any of the replies after the first couple of responses, too much reading on a message board.
I started working from home for myself back in Feb last year. All of my work so far has been word of mouth. Ideally find something you're good at, enjoy and something everyone needs and its unique. Easier said than done perhaps. If you're doing something you hate you're bound to fail.
I didnt have a written business plan I just went for it so far things are going really well although its a good suggestion.
Why work for some other prick that reaks the benefits and pays you fuck all, good security perhaps but no guts no glory. It's great not having a boss but you still have customers you have to answer to if things go to shit and its your rep that gets hit hard.

My advice is get a good/creative accountant and make sure customers pay on time or up front.

Good luck!

onlyme

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Re: How do you start a business?
« Reply #109 on: January 14, 2008, 08:38:03 PM »
Well, I wouldn't want that place just one in the same mall as there's space available. So I'd want to start new and put that dump out of business. Also, there is no sink for washing. I don't know how many members go to the gym but since it's right next door I imagine a good percentage go there. The space that I saw open is in the same walkway that starts at L&L's (if you're familiar with the lay out) you can see McDonald's from the empty lease space. Also, I'm sure I could double the membership just by staying open during the posted hours, extending the hours, dropping all expirations dates on sessions paid for, and cutting $10.00  on everything across the board. Oh, and having decent up to date beds that work.

Few Things;

Come up with a catchy name
What is the square footage
Is there plumbing and a restroom or at least able to put one in without any ground work
What kind of TI money is the landlord willing to put up
Who is the landlord (wondering in case i may know someone)
How is the electrical (those beds are going to take some power, is there enough there)
How is the roof
Make sure no leaks
How is the A/C (if it needs a new one the landlord must pay for it)
What is the rent and C.A.M. (N.N.N.?)
Can you see your entrance from the street
What is the frontage width (will determine how big a sign you can have)
What are the current utility comps for the surroundings spaces
FF&E costs
Permits, drawings and design costs
Put together a short and sweet Executive Summary of your business for the landlord so they get an idea of what you have planned.  Also, if this space is in the same shopping center will the landlord permit you opening.  Sometimes (I know I do it all the time) I make sure in my lease I have no new business's allowed to open in the same center that could be a conflict with my business.  If I have a Juice Bar then no business can open that sells smoothies, protein shakes or other items I sell.  No supplement shops are allowed either in the center since I will be selling supps from my pro shop.  You have to do this to protect yourself  So it would be interesting to see if the other place did that.

These are just some of the things you need to find out.  And of course how much is the beds going to cost to lease and what kind of up front cost are there and the shipping costs to Hawaii which can kick your ass too.

pellius

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Re: How do you start a business?
« Reply #110 on: January 15, 2008, 04:32:08 PM »
Few Things;

Come up with a catchy name
What is the square footage
Is there plumbing and a restroom or at least able to put one in without any ground work
What kind of TI money is the landlord willing to put up
Who is the landlord (wondering in case i may know someone)
How is the electrical (those beds are going to take some power, is there enough there)
How is the roof
Make sure no leaks
How is the A/C (if it needs a new one the landlord must pay for it)
What is the rent and C.A.M. (N.N.N.?)
Can you see your entrance from the street
What is the frontage width (will determine how big a sign you can have)
What are the current utility comps for the surroundings spaces
FF&E costs
Permits, drawings and design costs
Put together a short and sweet Executive Summary of your business for the landlord so they get an idea of what you have planned.  Also, if this space is in the same shopping center will the landlord permit you opening.  Sometimes (I know I do it all the time) I make sure in my lease I have no new business's allowed to open in the same center that could be a conflict with my business.  If I have a Juice Bar then no business can open that sells smoothies, protein shakes or other items I sell.  No supplement shops are allowed either in the center since I will be selling supps from my pro shop.  You have to do this to protect yourself  So it would be interesting to see if the other place did that.

These are just some of the things you need to find out.  And of course how much is the beds going to cost to lease and what kind of up front cost are there and the shipping costs to Hawaii which can kick your ass too.

Wow! It's amazing anybody gets anything off the ground. I never thought things can get so complicated. I wonder how those Koreans come here barely speaking English can get their liquor stores, restaurants, Laundromats and what have you. What the heck is CAM? NNN? FF&E? TI money? And all this permits, drawing, designed cost. I figure all I had to do was buy a room with some electrical outlets, plug in some beds and I'm good to go? LOL!  I've got to get a hold of my friend back in Redondo Beach who opened up a couple of salons and did pretty good. And he never struck me as being that bright or resourceful. His brother, who partnered with him, was a complete idiot and was given the boot. Anyway, at least I have a catchy name: "The One and OnlyMe!"

onlyme

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Re: How do you start a business?
« Reply #111 on: January 15, 2008, 05:27:39 PM »
Wow! It's amazing anybody gets anything off the ground. I never thought things can get so complicated. I wonder how those Koreans come here barely speaking English can get their liquor stores, restaurants, Laundromats and what have you. What the heck is CAM? NNN? FF&E? TI money? And all this permits, drawing, designed cost. I figure all I had to do was buy a room with some electrical outlets, plug in some beds and I'm good to go? LOL!  I've got to get a hold of my friend back in Redondo Beach who opened up a couple of salons and did pretty good. And he never struck me as being that bright or resourceful. His brother, who partnered with him, was a complete idiot and was given the boot. Anyway, at least I have a catchy name: "The One and OnlyMe!"

Well believe me if you intend to make money and not just get by and always be playing catch up then you have to think about this stuff.  Goodrum is trying to open his business without putting in the due diligence.  If you plan to just have a business where you are working everyday to make ends meet then you don't really need to do much research.  Just open and try to start making money.  but if you want to have a business that will survive through low times or when a competitor opens down the street from you or when the electricity is turned off then you need to make sure you have all your bases covered.  What is amazing is how much everything adds up to when you have it in a spreadsheet.  Everything adds up really quick.  you have to make sure when you open the landlord gives you some free rent time too.  Don't pay rent during construction.  You may have to pay C.A.M which is the Common Area Maintence.  Every landlord has this.  But get some free rent or at least reduced rent for the first few months of business at least.  Ask for 6 months.  All they will do is add it onto the back end of the lease or lets say your lease is 5 years, they will make it for 5 years and 6 months to make up for the free rent.  Also do an escalated rent schedule for at least the first year.  Yes there are a lot of thing to think about but then again you don't have to if it is your own money (no loans or investors) you can just go in and do what you want and see where the ball lands.

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Re: How do you start a business?
« Reply #112 on: January 15, 2008, 05:52:28 PM »
Well believe me if you intend to make money and not just get by and always be playing catch up then you have to think about this stuff.  Goodrum is trying to open his business without putting in the due diligence.  If you plan to just have a business where you are working everyday to make ends meet then you don't really need to do much research.  Just open and try to start making money.  but if you want to have a business that will survive through low times or when a competitor opens down the street from you or when the electricity is turned off then you need to make sure you have all your bases covered.  What is amazing is how much everything adds up to when you have it in a spreadsheet.  Everything adds up really quick.  you have to make sure when you open the landlord gives you some free rent time too.  Don't pay rent during construction.  You may have to pay C.A.M which is the Common Area Maintence.  Every landlord has this.  But get some free rent or at least reduced rent for the first few months of business at least.  Ask for 6 months.  All they will do is add it onto the back end of the lease or lets say your lease is 5 years, they will make it for 5 years and 6 months to make up for the free rent.  Also do an escalated rent schedule for at least the first year.  Yes there are a lot of thing to think about but then again you don't have to if it is your own money (no loans or investors) you can just go in and do what you want and see where the ball lands.

I know real estate is shit now but why rent property when you can have everything built for about the same amount and then have something to liquidate if you start going down.

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Re: How do you start a business?
« Reply #113 on: January 15, 2008, 07:51:42 PM »
make sure your business is a llc and not a corporation (taxes will kill ya for corporation)...I would assume Hawaii has a secretary of state website. Reserve your business name when you have decided to move forward.

onlyme

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Re: How do you start a business?
« Reply #114 on: January 15, 2008, 10:27:16 PM »
I know real estate is shit now but why rent property when you can have everything built for about the same amount and then have something to liquidate if you start going down.

In Hawaii most of the land is owned by a trust like Bishop Estates or Campbell and others.  Owning a commercial building is almost impossible and you still don't own it since you have to pay the land lease.  It is called leasehold.  To have a fee simple commercial property is rare.  Renting is something you have to do.  No reason to spend money building a building that in reality is worth nothing once the lease is up.  I had that problem in Kona for a gym I was looking to buy but the land lease was up in just 11 years and the land owner had no intention of renewing the lease cause he was going to tear down the building and put up condos.